In October 2004, the County Administrative Court decided in favour of the appeal by Holmen's subsidiary MoDo Capital against the 1997 tax assessment. Holmen presented the contents of the court's decision in a press release of 12 October 2004.

The Swedish tax authority had decided in 2002 to raise the company' tax assessment by a total of MSEK 538. Holmen appealed against the decision in 2003, and the County Administrative Court decided in the company' favour.

The tax authority has now appealed against the decision of the County Administrative Court to the Administrative Court of Appeal.

Holmen has not made any provision for any tax costs relating to this case, although the amount has been stated as a contingent liability.

For further information, please contact CFO Anders Almgren, tel. +46 8 666 21 00.